Northern Shipping rakes in $505 mln for third maritime credit fund

Stamford, Connecticut-based Northern Shipping, an alternative financing provider for the shipping and offshore oil service industries, has closed its third maritime credit fund at $505 million, beating its $400 million target.

The limited partners of Northern Shipping Fund III LP include public and private pension plans, high-net worth family offices and shipping executives.

Northern Shipping’s previous fund raised more than $204 million, according to an amended 2014 SEC filing. No information was available on the performance of this fund.

“Sector-focused credit strategies are increasingly topical for LPs looking to back operationally skilled managers that have a history of providing outsized yields and downside protection,” Jeff Eaton, partner at Eaton Partners, said in an email statement to Buyouts. Eaton Partners and Manor Private Capital LLC worked a placement agents on the fundraising. “This trend is likely to carry on into 2017 as LPs look for differentiated strategies with uncorrelated cashflows.”

Sean Durkin and Sybren Hoekstra, Northern Shipping’s president and senior investment manager respectively, will lead the fund.

Photo: Oil tankers are seen off southern Singapore April 18, 2012. Reuters/Tim Chong